In this month's legal updates, experts at law firm Gateley plc consider 'close of business' when filing receipts, breach of director duties but no compensation, consultation on expanding PSC regime
‘Close of business’ later in London than Ireland
June 2016’s Accountancy (p57) reported on McCann v Halpin & anor [2016] IESC 11 in which the Irish Supreme Court held that ‘close of business’ meant 4pm. In a decision that could prompt English workers to consider relocating to the Emerald Isle, the High Court in England has held that ‘close of business’ meant 7pm.
The case was the latest in the string of litigation arising from the collapse of Lehman Brothers (Lehman Brothers International (Europe) (In administration) v ExxonMobil Financial Services BV [2016] EWHC 2699 (Comm)). When Lehman Brothers went into administration in 2008 there was an outstanding sale and repurchase transaction between Lehman and ExxonMobil, the effect of which was that ExxonMobil had lent $250m to Lehman, and Lehman had provided ExxonMobil with collateral via a portfolio of securities. The case turned on whether ExxonMobil had properly exercised the ‘Default Valuation Notice’ procedure in the repurchase agreement.
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